Correlation Between Aptiv PLC and Winnebago Industries
Can any of the company-specific risk be diversified away by investing in both Aptiv PLC and Winnebago Industries at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Aptiv PLC and Winnebago Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aptiv PLC and Winnebago Industries, you can compare the effects of market volatilities on Aptiv PLC and Winnebago Industries and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Aptiv PLC with a short position of Winnebago Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptiv PLC and Winnebago Industries.
Diversification Opportunities for Aptiv PLC and Winnebago Industries
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aptiv and Winnebago is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Aptiv PLC and Winnebago Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winnebago Industries and Aptiv PLC is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Aptiv PLC are associated (or correlated) with Winnebago Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winnebago Industries has no effect on the direction of Aptiv PLC i.e., Aptiv PLC and Winnebago Industries go up and down completely randomly.
Pair Corralation between Aptiv PLC and Winnebago Industries
Given the investment horizon of 90 days Aptiv PLC is expected to generate 0.67 times more return on investment than Winnebago Industries. However, Aptiv PLC is 1.5 times less risky than Winnebago Industries. It trades about -0.02 of its potential returns per unit of risk. Winnebago Industries is currently generating about -0.07 per unit of risk. If you would invest 6,182 in Aptiv PLC on November 8, 2024 and sell it today you would lose (55.00) from holding Aptiv PLC or give up 0.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Aptiv PLC vs. Winnebago Industries
Performance |
| Timeline |
| Aptiv PLC |
| Winnebago Industries |
Aptiv PLC and Winnebago Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aptiv PLC and Winnebago Industries
The main advantage of trading using opposite Aptiv PLC and Winnebago Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptiv PLC position performs unexpectedly, Winnebago Industries can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Winnebago Industries will offset losses from the drop in Winnebago Industries' long position.| Aptiv PLC vs. Allison Transmission Holdings | Aptiv PLC vs. LKQ Corporation | Aptiv PLC vs. Lear Corporation | Aptiv PLC vs. Magna International |
| Winnebago Industries vs. LCI Industries | Winnebago Industries vs. Brunswick | Winnebago Industries vs. Polaris Industries | Winnebago Industries vs. Marine Products |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |